OAKS, PA — (Marketwire) — 07/18/12 — SEI Investments Company (NASDAQ: SEIC) today announced financial results for second-quarter 2012. Diluted earnings per share were $.28 in second-quarter 2012 compared to $.29 in second-quarter 2011.
“Second-quarter 2012 results reflect continued solid sales activity and improving profits and margins across our core business segments,” said Alfred P. West, Jr., SEI Chairman and CEO.
“Global financial market uncertainty and market volatility affected our results, particularly earnings from LSV. Despite this, we continue to see strong and growing interest in the solutions we offer from the markets we serve. We are confident we are on the right track and the investments we are making will enable us to significantly increase shareholder value.”
Revenues increased in second-quarter 2012 as compared to both second-quarter 2011 and first-quarter 2012. This was driven by an increase in Asset management, administrative, and distribution fee revenues resulting from increased cash flows from new and existing clients and market appreciation in 2012, despite the market decline in second-quarter 2012.
Our average assets under management, excluding LSV, increased $7.4 billion, or six percent, to $126.6 billion in the second-quarter 2012 as compared to $119.2 billion during the second-quarter 2011 and increased $2.5 billion, or 2 percent, as compared to $124.1 billion during the first-quarter 2012 (See attached Ending and Average Asset Balances schedules for further details).
Sales events, net of client losses, during second-quarter 2012 totaled approximately $20.3 million and are expected to generate net annualized recurring revenues of approximately $15.7 million when contract values are fully realized.
Income from LSV decreased $6.8 million to $22.7 million in second-quarter 2012 as compared to $29.5 million in second-quarter 2011. The reduction in earnings was due to lower assets under management from market deprecation in second-quarter 2012 and a decrease in our ownership interest to 40 percent from 41 percent.
Net income attributable to SEI includes gains from SIV securities of $1.1 million in second-quarter 2012 compared to losses of $1.9 million in second-quarter 2011 and a gain of $2.9 million in first-quarter 2012.
The effective tax rates were 36.6 percent in the second-quarter 2012 and 34.7 percent in the second-quarter 2011. The increase in the tax rate was due to tax planning strategies which benefited the tax rate in second-quarter 2011.
In the second-quarter 2012, SEI purchased 2.25 million shares of its common stock for $42.2 million.
A conference call to review earnings is scheduled for 2:00 PM ET on July 18, 2012. Investors may listen to the call at or listen at , a service of Thomson Streetevents. The call may also be accessed at numerous financial services web sites including AOL and Yahoo. Investors may also listen to replays at these web sites, or by telephone at (USA) 1-800-475-6701; (International) 320-365-3844, access code 254406.
SEI (NASDAQ: SEIC) is a leading global provider of investment processing, fund processing, and investment management business outsourcing solutions that help corporations, financial institutions, financial advisors, and ultra-high-net-worth families create and manage wealth. As of June 30, 2012, through its subsidiaries and partnerships in which the company has a significant interest, SEI manages or administers $424 billion in mutual fund and pooled or separately managed assets, including $182 billion in assets under management and $242 billion in client assets under administration. For more information, visit .
Many of the statements in this release may be considered “forward looking statements” and include discussions about future operations, strategies and financial results. Forward-looking statements are based upon estimates and assumptions that involve risks and uncertainties, many of which are beyond our control or are subject to change. Although we believe our assumptions are reasonable, they could be inaccurate. Our actual future revenues and income could differ materially from our expected results. We have no obligation to publicly update or revise any forward-looking statements.
Murray Louis
SEI
+1 610-676-1932
Dana Grosser
SEI
+1 610-676-2459